Contestable market conditions will cause a natural monopoly to produce the competitive quantity.

Name: Contestable market conditions will cause a natural monopoly to produce the competitive quantity.
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Question

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In a contestable market, a natural monopoly may face potential competition, which can lead to more efficient pricing and output closer to competitive levels, but it does not guarantee production at the competitive quantity due to the monopoly's inherent advantages in production or distribution.

Contestable Market Conditions Will Cause a Natural Monopoly to Produce